(Washington, D.C.) Citing the significant financial
burden that a loss of health insurance benefits places on fixed-income retirees
from the Delphi Corporation, Congressman Tim Ryan weighed in with a letter to
the bankruptcy court on Monday. The letter to Judge Robert D. Drain, the
presiding judge overseeing Delphi Corporation’s bankruptcy proceedings,
implored the judge to consider the significant economic repercussions the loss
of benefits causes the retirees.

“The financial burden will be approximately $14,000 per
retiree per year, an unacceptable sudden financial challenge,” Congressman Ryan
states in his letter. “ I am outraged by the fact that Delphi Corporation
admits in its document that canceling these health care benefits ‘will impose a
real hardship on the former beneficiaries of these terminated programs,’ yet
the corporation plans to continue proceedings to the detriment of many of my
constituents. “

In the letter, Congressman Ryan also reminds Judge Drain of
the significant effects that the loss of benefits will have to the community at
large. The loss of health benefits will force retirees to spend a much larger
share of their expendable income on health care rather than in other sectors of
the economy which would create a domino effect throughout Northeast Ohio.

“Many Delphi retirees reside in the 17th congressional
district and in Northeastern Ohio generally, a region already facing many
economic obstacles,” said Congressman Tim Ryan. “To cut retirees’ health
benefits would create a domino effect in which health care providers in our
communities would also suffer from a lighter patient load, due to the lack of
health care benefits. Not only would the health care industry be
affected, but, Delphi Corporation retirees would have to spend their
disposable income on essential medical treatment, funds that will no longer go
to retail and service providers.”

I write to express my serious concern regarding Delphi
Corporation’s February 4, 2009 filing of Document #14705. As U.S.
Representative of the 17th District of Ohio, I object to Delphi’s request to
cancel health benefits (OPEB) for over 15,000 salaried Delphi retirees, many of
whom are my constituents.

Delphi Corporation’s plan to cut the health benefits to
salaried retirees creates a dilemma for the retirees and their families.
Firstly, the expiration date of health benefits is April 1, 2009, which allows
very limited time for retirees to consider how they will assume the massive
financial burden of paying for health care. It is estimated that this
cost will be approximately 10 times the annual premium for health care.
The financial burden will be approximately $14,000 per retiree per year, an
unacceptable sudden financial challenge. I am outraged by the fact that
Delphi Corporation admits in its document that canceling these health care
benefits “will impose a real hardship on the former beneficiaries of these
terminated programs,” yet the corporation plans to continue proceedings to the
detriment of many of my constituents.

Not only will Delphi Corporation’s plan hurt the individual
retirees and their families, it will also harm the communities in the 17th congressional
district of Ohio. Many Delphi retirees reside in the 17th congressional
district and in Northeastern Ohio generally, a region already facing many
economic obstacles. To cut retirees’ health benefits would create a
domino effect in which health care providers in our communities would also
suffer from a lighter patient load, due to the lack of health care
benefits. Not only would the health care industry be affected, but,
Delphi Corporation retirees would have to spend their disposable income on
essential medical treatment, funds that will no longer go to retail and service
providers. I am sure that you understand that the cascading effect is
inevitably disastrous, and, for that reason, I ask that you refrain from
favoring the debtor’s plan.

I also would ask you to consider the current economic and
political situation of the country at large. The United States House of
Representatives, along with President Obama and his Administration, are
committed to ensuring the well-being of the domestic auto industry, of which
Delphi Corporation is a part. With proper action by the federal
government, Delphi Corporation’s dire predictions regarding industry collapse,
could be mitigated. The debtors have decided to cancel the health
benefits of its salaried retirees based on the absolute collapse of the
auto industry, which the Congress and President are committed to prevent.

Please consider the burden Delphi Corporation is placing
upon its retirees, their families and their communities. Fourteen
thousand dollars of unanticipated costs is burdensome for a retiree on a fixed
income. Delphi Corporation’s plan is one that its retirees cannot accept
and I ask for your objection to the cancellation of their health
benefits. Thank you for your consideration.

Sincerely,

Tim Ryan

Member of Congress

CC: Clerk of U.S. Bankruptcy Court for the Southern
District of New York